October 25, 2026 | IEU News

Status: Proposed rule — not currently in effect

The U.S. Department of Homeland Security (DHS) has proposed a significant change to Optional Practical Training (OPT), the program that allows eligible international students on F-1 visas to gain work experience related to their studies.

Under the proposal published on October 8, 2026, educational institutions would be required to pay $70,000 for an initial OPT recommendation and $30,000 for subsequent OPT recommendations, including qualifying STEM OPT extensions.

This could have serious implications for Indian students pursuing degrees and employment opportunities in the United States.

But an important clarification: This is a proposal, not a new fee that students or universities are currently required to pay.

What exactly is being proposed?

The regulation would introduce two fees payable by Student and Exchange Visitor Program (SEVP)-certified educational institutions.

The initial $70,000 fee would apply when a school recommends an eligible F-1 student for OPT for the first time, whether before or after completing a degree.

A subsequent $30,000 fee would apply when the school makes another OPT recommendation for a student whose initial fee has already been paid. This includes STEM OPT extensions.

For example, if a student completes a degree and receives an initial OPT recommendation followed by a STEM OPT extension, the proposed federal fees could total $100,000 across those two recommendations.

Changing employers alone would not trigger a new fee. The proposal concerns new OPT recommendations, not every job change.

It also does not propose these fees for Curricular Practical Training (CPT).

Would Indian students have to pay $70,000 themselves?

This is probably the biggest question students and parents will have.

Under the proposed rule, the educational institution would be responsible for making the payment to the federal government before its designated school official (DSO) recommends the student for OPT.

However, DHS explicitly acknowledges that universities could pass the financial burden to international students, other students, or employers, subject to applicable laws.

That means students should not assume universities would automatically absorb these costs.

The eventual financial impact would depend on whether a final rule is issued, its precise terms, and how individual institutions respond.

What happens to students already on OPT?

The proposal contains important transition provisions.

Students already participating in previously approved OPT, those approved before a future effective date, and those whose DSO issued an OPT recommendation before that date would not be subject to the proposed fee for that existing authorization.

However, a later recommendation, such as a STEM OPT extension, could trigger the fee provisions after implementation.

The proposal contemplates taking effect 60 days after publication of a final regulation.

No final implementation date has been established by this proposed rule.

Why is the government proposing these fees?

DHS says the proposal is intended to combat fraud, strengthen oversight of OPT, and protect opportunities for American workers.

The department believes substantial fees could encourage institutions to scrutinize OPT recommendations more carefully.

At the same time, DHS acknowledges that the proposal could lead to fewer OPT recommendations, reduced opportunities for practical training, and changes in international student enrollment.

These are potential effects being considered during the rulemaking process, not outcomes that have already occurred.

Why should Indian families pay attention?

For many Indian students, the ability to pursue practical training after graduation is an important consideration when selecting a U.S. university.

If these fees become law in their proposed form, universities might reconsider how they fund OPT participation or which students they recommend.

Prospective students could face greater uncertainty about the cost and availability of post-graduation training.

Families budgeting for U.S. education should therefore pay attention to the proposal without assuming that current OPT rules have already changed.

Students who are currently studying, applying for OPT, or preparing for STEM OPT extensions should consult their university’s international student office regarding their individual circumstances.

Can the public comment on the proposal?

Yes. DHS is accepting public comments on the proposed regulation until November 9, 2026, at 11:59 p.m. Eastern Time.

The public comment process allows students, educational institutions, employers, and other interested individuals to provide information and express concerns.

The official rulemaking reference is Docket ICEB-2026-0100.

There is a separate December 7 deadline for comments relating specifically to information-collection requirements.

What happens next?

DHS may consider public comments and decide whether to finalize, revise, or withdraw the proposal.

Until a final regulation is published and becomes effective, the newly proposed $70,000 and $30,000 OPT fees are not operative requirements.

Bottom line: Indian students and their families should take this proposal seriously, but there is no reason to assume that every F-1 student must immediately pay a new $70,000 fee.

IEU News will continue following the official rulemaking process and report meaningful developments.

Official sources

Government Publishing Office — Federal Register, October 8, 2026

Federal Register — Optional Practical Training Fees

Regulations.gov — Submit Public Comments

This article provides general information and should not be treated as individualized immigration or legal advice.